Litecoin Privacy, Crypto Conditions and the Fed’s $60-Billion ‘Silent QE Program’: eToro Market Update
Hi Everyone,
When flying from Tel Aviv to Las Vegas, the flight itself takes almost no time, but going the other way, you lose a day.
Flight time in both directions is approximately 14 hours and the time difference is 10. So on my way here, I ended up landing just 4 hours after I took off, but on the way back landing is a full 24 hours after takeoff.
Therefore, I regret to inform you that there will be no daily market update on Thursday because for me this week, there will be no Thursday.
@MatiGreenspan eToro, Senior Market Analyst
Today’s Highlights
- Fed Rate Cut
- Light Fungibility
- Crypto Conditions
Please note: All data, figures, and graphs are valid as of October 30th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Today the United States Federal Reserve seems set to cut their interest rates for the third time this year.
With the US stock markets near all-time highs, unemployment near all-time lows, and inflation more or less stable, it’s difficult to see why the Fed would need to be cutting rates so rapidly. Nevertheless, the markets fully expect them to do it and it seems the cut is already priced in.
Investors will also want to hear about the Fed’s operations in the repo market. At present, they’re injecting $75 billion per day into these short term markets, which is supposed to expire on November 4th.
The ‘silent QE program’ (yes, that’s what I choose to call it because they refuse to call it QE and have gone to great lengths to not call attention to this operation), which is supposed to print $60 billion per month until Q3 2020 is less of a focus but may catch some attention as well.
Out of the many companies that will report their earnings today, the highlights are Facebook and Apple.
For all our clients and colleagues in the UK, it seems we finally have a date for your general election. December 12th. Certainly much later than the Prime Minister was hoping but still enough for him to have a cabinet together by New Year’s break if he hustles.
It’s beginning to look a lot like Brexmas.
Light Privacy
Once again, I’d like to thank the great folks at the Litecoin Foundation for inviting me out and being so hospitable.
It was great to see the LTC community, or LitecoinFam as they’re often called, but even more, I was excited to glimpse the future road map for the original altcoin.
After admitting in August that development has been slow due to a lack of programmers, in the last few days founder Charlie Lee has shown us that he’s serious about bringing privacy to Litecoin. Yesterday, he announced a new lead developer who will implement the Mimblewimble privacy protocol on the LTC blockchain.
To be clear, as far as Lee is concerned, the new update is less about concealing transactions and more about the fungibility of the network. One of the main properties of money is that it’s fungible. One dollar can be exchanged for any other dollar because they’re all identical. Short of that, you get a chaotic system where some dollars are worth more than others.
It seems the Bitcoin community is also eager to implement further privacy in BTC and as we’ve seen many times in the past Litecoin has a tendency to pave the way with these types of developments.
Crypto Conditions
Seems my flight is about to board but I did want to report that as it stands, crypto markets are looking healthy. Volumes have returned to a normal level, as has sentiment, while Bitcoin tests support at $9,000. A psychological level that somehow seems more significant than $10,000 lately.
Hope you have an amazing day ahead.
Mati Greenspan Senior Market Analyst
Connect with me on
eToro Twitter LinkedIn Telegram Your Social Investment Network – www.eToro.com
eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission. eToro AUS Capital Pty Ltd. is regulated by the Australian Securities and Investments Commission, ABN 66 612 791 803, AFSL 491139.
This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.
This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.
